Kiwisaver – Employer Contributions


All Kiwisaver members making a contribution from their pay (3%, 4%, 6%, 8% or 10%) will have a minimum of 3% employer contributions paid as well.


The employer contributions paid to a superannuation fund for the benefit of an employee are liable for ESCT (employer superannuation contribution tax).  The exception to this is if the employee and employer have agreed to treat some or all of the employer contributions as salary or wages under PAYE rules.


Employers do not have to make compulsory employer contributions if:

  1. You are already paying sufficient contributions into another approved superannuation scheme for your employee
  2. Your employee is under 18
  3. Your employee is over 65 AND has been contributing for at least 5 years
  4. Or your employee is not required to have deductions made from their pay (eg Kiwisaver Holiday or Leave without pay).

In the case of number 3, it is advisable that you check with your employee if they have been contributing to Kiwisaver for more than 5 years, before ceasing employer deductions and ESCT.


You can find this information on the KS3 form—ir99/ks3/ks3-09-2020.pdf

Penny Varley

Payroll Administrator